document.write( "Question 1139889: if i have the choice of the following methods of payment how much would i have to earn in sales to get the same pay regardless of the option chosen and when would i be better off in option A?
\n" );
document.write( "Payment Method A: A retainer of $250 per week plus 2.5% of sales.
\n" );
document.write( "Payment Method B: No retainer but 3.5% of sales.
\n" );
document.write( " \n" );
document.write( "
Algebra.Com's Answer #760406 by Theo(13342)![]() ![]() You can put this solution on YOUR website! method A.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "250 per week retainer plus 2.5% of sales.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "method B.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "no retainer plus 3.5% of sales.\r \n" ); document.write( " \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "equation for method A.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "r = 250 + .025 * x\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "equation for method B.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "r = .035 * x\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "when the revenues are equal, 250 + .025 * x = .035 * x\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "subtract .025 * x from both sides of the equation to get 250 = .01 * x\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "solve for x to get x = 250 / .01 = 25000.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "the two methods break even when the store makes sales equal to 25000.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "when that happens, r = 250 + .025 * 25000 = 875 and r = .035 * 25000 = 875.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "you would be better off with method A when the average amount of sales per week is less than 25000.\r \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( "\n" ); document.write( " \n" ); document.write( " |